scary credit offers....

killbilly

killbilly

Vocals, Lyrics, Triangle, Washboard, Kittens
So I've been getting these loan offers in the mail lately - they're actual checks for a couple thousand here and there, and I've been shredding them. But they upped the ante - I get one in the mail today for six grand.

That's enough for a ppl, y'know. And while I'm the biggest anti-debt person I know...still...

...so I start reading the terms and conditions.

27.616% interest rate. 5 year term. Total cost of the $6,000 is $5126!

Holy Cow!

I really hope folks aren't thinking, "hey! I got a loan without applying!" and then depositing these things. 'Cause they're scary as hell.
 
E_Dawg said:
Can they really do that? If so, that shouldn't be legal.
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I always get checks from BoA for 10-15 dollars saying 'deposit now!', until you read the print which states that depositing the money signs you up for this and that. :rolleyes:

It reminds me of how credit companies used to send out cards unsolicited, not just applications.
 
Yes, they can do it, and I agree - they shouldn't be allowed to.

You can choose to opt-out of pre-screened credit offers. I just haven't bothered.
 
I just called today to opt out of offers for the next 5 years for me and my wife. I thought about doing it permanently, but decided on 5 years for now. Every time you get one of those loan offers the company has done a credit inquiry and that affects your credit score. Not a great deal since you didn't request the credit, but it still decreases your score a small amount.

EDIT: The number is 1-888-567-8688 and it's reccomended to call from your home phone. More information available at: http://www.ftc.gov/privacy/protect.shtm
 
EDUC8-or said:
Every time you get one of those loan offers the company has done a credit inquiry and that affects your credit score. Not a great deal since you didn't request the credit, but it still decreases your score a small amount.
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Not true, a company does a soft pull on your credit when deciding whether or not to send you an app. They can only do a hard pull(the only kind that affects your credit score) if you apply for the credit.
 
EDUC8-or said:
All of the soft pulls show up as an inquiry on your credit report.
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yes, they show as a soft-pull, but they do NOT affect FICO score or creditworthiness decisions. I pull mine once a month, like clockwork. No problems there.
 
Thanks for that info. I think the biggest reason for opting out is to reduce the amount of junk mail we receive and I'm not a fan of pre-approved offers for loans and credit cards floating around out there with my name on them.

You think those rates are scary, CashCall has a $2600 loan with a 99.25% interest rate. I saw the commerical with Gary Coleman the other day and almost fell over when I saw the APR. Check this out: http://www.cashcall.com/General/Rates.aspx
 
EDUC8-or said:
Thanks for that info. I think the biggest reason for opting out is to reduce the amount of junk mail we receive and I'm not a fan of pre-approved offers for loans and credit cards floating around out there with my name on them.

You think those rates are scary, CashCall has a $2600 loan with a 99.25% interest rate. I saw the commerical with Gary Coleman the other day and almost fell over when I saw the APR. Check this out: http://www.cashcall.com/General/Rates.aspx
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Holy crap!!! :eek: you can get better rates from loan sharks!
 
When you do deposit those 3,5,10,15$ checks you get singed up for some stupid membership that shows up on your credit card for 29.95 a month in some cases.
 
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